Private Company Investment Agreement

In the case of investment contracts, the person is not a new shareholder, but may be an existing shareholder or external investor. In the search for a suitable precedent, the main factor in choosing the previous one is whether you opt for a version with one or more investors (the latter is appropriate if there is a consortium of investors). As a general rule, the key issues that the investor must provide for in the investment agreement for the conclusion of the agreement, i.e. the main conditions that must be met for the conclusion, are the confirmation that: There will be a provision in the agreement to ensure that its parties keep all confidential information confidential. Normally, an investor is expressly authorized to communicate information to his collaborators, members, participants, etc. As the investment agreement regulates the subscription of shares by investors in return for investment funds, the investment agreement should bind all participating investors, including all segregated funds that invest. In contrast, a shareholders` agreement protects the rights of existing shareholders, unlike new parties wishing to acquire ownership of the company, as described in an investment agreement. Although the specific conditions contained in a shareholders` agreement depend on the specific interests of the shareholders, they are typical provisions: another unique component of investment agreements allowing the partial payment of investments to a company by investors over time are investment tranches. Guarantors may qualify the guarantees by means of a letter of publication and agree in the investment agreement on limitations of the guarantees (e.g. B time limitations, materiality threshold and financial limitations of a right (normally linked to a multiple of his salary for a founder and, for the company, generally to the full value of the investment)). These are the measures that must be taken at the end of the first tranche of investment: guarantees are guarantees provided by the guarantors, who are usually the founders and the company, that certain statements concerning the company are accurate and accurate at the balance date. Although investors have performed due diligence from the company and have the right, under common law, to sue the founders for misrepresentation if the information provided was inaccurate, investors will prefer that such statements be explicitly included in the contract. .

. .